Showing posts with label HOA Class Action. Show all posts
Showing posts with label HOA Class Action. Show all posts

Friday, May 25, 2012

HOA Syndrome



Ten years I suffered from HOA Syndrome. My self-respect, emotional regulation, and distress tolerance was tested. Not with each notice I received, but by also from witnessing the faces of families, my neighbors, as they suffered silently too. I witnessed neighbors taking care of their front lawns out of fear, not out of pride in living there. I heard reports of Vietnamese families being bullied out of all the equity in their home in HOA liens, fees, and legal costs over trivial matters. I was discriminated against using the by-laws against me. I was discriminated against based on my gender identity. My son, whom is co-owner of our properties was discriminated against based on him being a homosexual. We all have a right to live anywhere. We are legal citizens in our country. Our country is based on freedoms, except in an HOA. I noticed no one played on our block. No one talked to one another. It was the most dysfunctional system I have ever experienced in my lifetime. The stress I felt in having to have a perfect home made me emotionally and physically sick. Living happily was my goal and my objective when I contracted to have a home there, never to be abused by the by-laws and HOA system. I was not happy in my expensive home. In fact, I'd venture to guess, no one in my neighborhood was happy, except those in charge of our HOA. Getting back my own power was my long-term objective. Being happy and healthy is my objective now. Sadly, HOA's in most covenant controlled communities have quite the power -- a quasi-government that has more power and control than our own Constitutional Rights! The only options I felt to live a happy and healthy life was to leave, so I did. I realize many of you are stuck, you feel you have no where else to go. Be strong, look up your legal rights, and fight for them; no matter how small or trivial. Do not allow the HOA bullies to take away your power using by-laws as the vehicle to control or abuse you. Speak up and fight back. HOA's should be outlawed. Law makers, States, and the Federal government that continue to allow this abuse should be responsible for these abuses. HOA's are criminal! Extortion is criminal.The issue here isn't the "notice" or just the "fine." The issue is the abuse of power and non-judicial foreclosures. That is extortion, which is criminal. I will not rest until I see all HOA criminals in jail for white collar crime. After all, our HOA is a "Limited Liability Corporation."

“History bequeaths a demonstrative message: Some who gain a position of power will inevitably strike down the rights of others, animals and humans, in the name of greed, grandiosity, and evil sadistic gratification.  Brief time passes, societies crumble under the weight of rise to power, and without learning prior lessons, the disgorging cycle once again begins.”
Professor Gary Solomon






This blog is not intended to be specific legal advice. It only provides general legal information. You should consult a licensed attorney if you have a legal issue.

Anshel Bomberger



Monday, May 21, 2012

Notice of Complaint

COMPLAINANTS:

Anshel Bomberger and Kennedy Smith-Fliesher, Homeowners, Co-Complainants
Regarding Residental Single-Family Home Address: 15437 East 7th Circle, Aurora, CO 80011

RESPONDENTS:

HIGHLINE COURT HOMEOWNERS ASSOCIATION, INC
c/o Western States Property Services, Inc.,
Ina Meyer, Property Manager: ina@wsps.net
Sue Johnston, President, Highline Court HOA Board of Directors
9145 East Kenyon Avenue, Suite 100, Denver, Colorado 80237
Office: 303-745-2220 Fax: 303-745-3335  http://www.wsps.net

DATE: 04-27-2012

This correspondence is to serve as notice of complaint against the Highline Court HOA, Inc., Board of Directors, ("HOA"), through and in care of the property management agent, Western States Property Services, Inc., (“WSPS”), pursuant to CRS SECTION 1. 37-60-126 (11), Colorado Revised Statutes, which was amended to read: "37-60-126.

Specifically, (11)(a); along with the Fair Housing Act and Civil Rights Act of 1968; based on alleged harassment and alleged discriminatory practices by the Highline Court HOA, Inc., (“HOA”). and property management agent, WSPS, under any and all State and Federal laws in the proper jurisdiction of this matter.

1. Complainant is a disabled veteran (disability status is protected by law and will not be disclosed). Complainant is a "Female to Male" transsexual (“transgender man”) living full time as a male and was formerly known publicly and privately in the Denver metropolitan community as a lesbian. Complainant’s son, is also a homosexual and is co-complainant in this matter as his homosexual status includes him in a protected class for Civil Rights Act laws, Fair Housing Act laws and Anti-Discrimination laws.

2. This issue will not be resolved when the Board of Directors abuse their powers to act on behalf of HOA and each and every homeowner affected by abuse of powers. Especially when such abuse in powers are outrageous and capricious in nature and are alleged harassment and discriminatory for all the above and below stated reasons within this notice of complaint.

3. The Board HOA, through the management company, WSPS, imposed an alleged violation notice, dated 04-24-2012, giving 20-days to remedy the said alleged violation or they would further file a violation lien proceeding on our property. Liens can and do lead to foreclosure of properties, getting people out of the community when they are not wanted.

4. The property in this action is located at: 15437 East 7th Circle, Aurora, CO 80011. The co-owners of said property are: Anshel Bomberger and Kennedy Smith-Fliesher, et al, homeowners.

5. During the date of this issue in this matter, the State of Colorado has undergone a State-1 drought and water restrictions have been imposed by local authorities.

6. On or around April 16, 2012, Complainant put fertilizer on their lawn and the lawn died in spots, noting that not the entire lawn died. The Complainant made a good-faith effort to abide my HOA covenants and resurfaced the soil, by putting grass-seed, appropriate mulch on the affected areas, and hand watered in accordance to the local authorities water conservation recommendation.

7. An alleged violation notice was served on Complainant by the HOA Board, and through the HOA's agent, Property Manager, Ina Meyers, of the Western States Property Services, Inc., via U.S. Mail, dated: 04-24-2012 and is on record with the WSPS office.

8. This NOTICE is to serve as Complainant's intent to wave a request for a hearing with the HOA Board of Directors (per the letter dated 04-24-2012) with the Highline Court HOA, Inc., and WSPS.

9. Further this NOTICE is to serve as Complainant's LEGAL NOTICE of our intent to sue for harassment, discrimination, and abuse of powers and fiduciary authority as it pertains to each Board member of the Highline Court HOA, its officers, designees, management firm handling such notices, its officers, and any other third party that arises or results from filing this complaint in the proper State and Federal agency, as well as any court of law, within proper jurisdictions of the HOA and WSPS, naming each as Respondents/Defendants in this legal matter.

10. The conduct of the Highline Court HOA, Inc., the HOA Board, to include the Property Manager, employed with WSPS, handing such alleged violations and notices, is OUTRAGEOUS, CAPRICIOUS, and a clear violation of the laws in place pursuant to SECTION 1. 37-60-126 (11), Colorado Revised Statutes, which was amended to read:

"37-60-126. Water conservation and drought mitigation planning - programs - relationship to state assistance for water facilities - guidelines. (11) (a) Any new SECTION OF A restrictive covenant that prohibits or limits XERISCAPE, PROHIBITS OR LIMITS the installation or use of drought-tolerant vegetative landscapes, is prohibited OR REQUIRES CULTIVATED VEGETATION TO CONSIST EXCLUSIVELY OR PRIMARILY OF TURF GRASS IS HEREBY DECLARED CONTRARY TO PUBLIC POLICY AND, ON THAT BASIS, THAT SECTION OF THE COVENANT SHALL BE UNENFORCEABLE. (c) NOTHING IN THIS SUBSECTION (11) SHALL PRECLUDE THE EXECUTIVE BOARD OF A COMMON INTEREST COMMUNITY FROM TAKING ENFORCEMENT ACTION AGAINST A UNIT OWNER WHO ALLOWS HIS OR HER EXISTING LANDSCAPING TO DIE; EXCEPT THAT: (I) SUCH ENFORCEMENT ACTION SHALL BE SUSPENDED DURING A PERIOD OF WATER USE RESTRICTIONS DECLARED BY THE JURISDICTION IN WHICH THE COMMON INTEREST COMMUNITY IS LOCATED, IN WHICH CASE THE UNIT OWNER SHALL COMPLY WITH ANY WATERING RESTRICTIONS IMPOSED BY THE WATER PROVIDER FOR THE COMMON INTEREST COMMUNITY; (II) ENFORCEMENT SHALL BE CONSISTENT WITHIN THE COMMUNITY AND NOT ARBITRARY OR CAPRICIOUS; AND (III) ONCE THE DROUGHT EMERGENCY IS LIFTED, THE UNIT OWNER SHALL BE ALLOWED A REASONABLE AND PRACTICAL OPPORTUNITY, AS DEFINED BY THE ASSOCIATION'S EXECUTIVE BOARD, WITH CONSIDERATION OF APPLICABLE LOCAL GROWING SEASONS OR PRACTICAL LIMITATIONS, TO RESEED AND REVIVE TURF GRASS BEFORE BEING REQUIRED TO REPLACE IT WITH NEW SOD."

11. Further, the Department of Regulatory Agencies, Colorado Civil Rights Division, has laws into place that protect gay, lesbian, and transgender persons that reside in the State of Colorado. “Sexual Orientation” means heterosexuality (“straight”), homosexuality (lesbian or gay), bisexuality (“bi”), transgender status, or the perception thereof. “Transgender Status” means having a gender identity or gender expression that differs, or does not differ, from societal expectations based on gender assigned at birth. “Gender Identity” means an innate sense of one’s own gender. “Gender Expression” means external appearance, characteristics or behaviors typically associated with a specific gender.  Effective May 29, 2008, the Colorado Anti-Discrimination Act was expanded to include sexual orientation, inclusive of transgender status, to the list of protected classes for public accommodations. Effective May 29, 2008, the Colorado Anti-Discrimination Act was expanded to include sexual orientation, inclusive of transgender status, to the list of protected classes for public accommodations. Title 24, Article 34, Part 6, Colorado Revised Statutes, protects my son and I from discrimination in public accommodation which the HOA may fall.

12. It is outrageous, capricious, discrimination, and harassment in nature to send a notice of alleged violation dated 04-24-2012, when there is a period of water restriction declared by the City of Aurora beginning May 1, 2012 and extending as late as Oct 1, 2012. The homeowner is required to comply with the water restrictions imposed by the water provider, which has powers above and beyond any alleged lot violation (imposed by and through HOA) for not being able to water and bring the lot back to life in the areas where the lawn has been affected.

13. The HOA Board and management company, is not allowing a reasonable and practical opportunity, with consideration of applicable local growing season, practical limitations to reseed, which the homeowner in this case has done before the date of the said notice by the Highline Court HOA, and management company (dated 04-24-2012).

14. This NOTICE does not preclude the opportunity for any other homeowners affected by abuse of powers by and through the HOA and WSPS, to file as co-complainant/plaintiffs, thus exercising our rights to also file a Class Action Complaint against each HOA Board member, agent, designee, and any and all other third parties involved with this action; resulting out of their outrageous, capricious, harassment, and discrimination throughout the years this HOA has been incorporated and violating our Constitutional Rights.

15. As a matter of law, the HOA, HOA Board, and through their Property Management agents, are dismissing the laws that protect any homeowner when a watering issue is at issue for a alleged "Dry Lawn and Weeds" violation.

16. There is no other reason for this homeowner to have to endure such alleged violation notices. The HOA, HOA Board, and WSPS, is misinterpreting the laws and abuses powers in favor of the HOA and not the homeowner.

17. The complainants allege than this homeowner and son belong to certain classes that bring up the matter of being harassment and discrimination based on our disability, gender status, sexual orientation, and religion; which violates Federal Statutes under the Fair Housing Act; as the homeowner is a Jewish, transgender, disabled veteran.

18. On several occasions, Sue Johnston, President of the HOA Board made disparaging remarks about Complainants transgender status, stating, "I can see why Kathy left you, if my husband did what you are doing, I'd leave him too and we have been married for over thirty years." This comment left Complainant to believe there is an attitude of bias and discrimination on the part of this so-called “neighbor” that is the President of the HOA Board, against those that are of a protected class.

19. The Civil Rights Act of 1968, commonly called the Fair Housing Act, which outlawed discrimination in the sale, rental, financing and advertising of housing (to include HOA abuses in CID's) base on the violation of such laws due to race, color, religion, sex (1974), national origin, disability (1988) or family configuration (1988). These are examples of discriminatory impact when harassing, threatening, intimidating, and coercing homeowners to comply with alleged violations when the homeowner is abiding by water restrictions above and beyond the HOA covenants. The water restrictions imposed by the city have more powers than the HOA in these matters. Harassment includes actions that are suspicious and discriminatory in nature, regardless of the intent of the HOA Board member, HOA, and management company action on behalf of HOA Board and HOA. Harassment is based on how the homeowner interprets it, not the perpetrator. As a HOA Board, HOA, and management company handling such issues, the HOA Board, HOA, and management company has the role of setting a climate of civility and respect in our community, not harassment or discrimination. Fair housing laws generally require agents handling sensitive issues to be consistent in all of the HOA policies, procedures, and rules, and certainly not violate any State and Federal laws in the process.

20. This homeowner (Complainants’), as well as other homeowners of this Highline Court HOA are not taking these matters lightly. Other homeowners have reported that the HOA Board is out of control and abusing their powers based on certain neighbor's and HOA members national origin, as a matter to force homeowners out that are not White, Heterosexual, Christian, and American Born. It is our intent to make abuses in power, harassment, and discrimination in this HOA and its Board Members accountable for such illegal practices, which may be construed as criminal in nature in accordance with State and Federal laws.

21. We reserve the right in the future to file a Class Action should the need arise.

22. In closing, when I swore into the Armed Forces of the United States of America, the greatest country on this planet, I stated the following:

"I, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; and that I will obey the orders of the President of the United States and the orders of the officers appointed over me, according to regulations and the Uniform Code of Military Justice. So help me God."

(Title 10, US Code; Act of 5 May 1960 replacing the wording first adopted in 1789, with amendment effective 5 October 1962)."

23. Nowhere in this oath did I swear to bear true faith and allegiance to an HOA at any time in my lifetime. Signing the closing documents of the said property does not give the HOA a right to violate any of my rights as a citizen of this great nation. I was willing to give my life to protect our nation. I will not allow myself to put up with any HOA's abuses (to include psychological forms of coercion) of my Constitutional Rights for one moment longer. I refuse to live in a community where I am forced to put up with this sort of abuse of power and a violation of my Constitutional rights that I was willing to give up my life for.

24. President of the HOA Board, Sue Johnston's words (as reflected in paragraph 18 above) is biased, discriminatory in nature, and shows that she is not looking out for all of the members of the HOA, let alone “neighborly.” She has a hidden agenda. She and the HOA Board, to include the Property Manager of WSPS, is not any homeowners master and no homeowner is their slave. As a Jewish transgender human being, I have a right to liberties, just as other Americans are afforded rights. It is not up to the HOA Board, it’s fiduciaries, and WSPS to force people out of neighborhood based on misinterpretation of State and Federal laws. The HOA laws do not abolish any and all other State and Federal laws. Being ignorant of the laws is no excuse. Psychologically coercing people to do things their way or else is illegal and criminal in nature.

25. Homeowners' associations (HOAs) are legal entities created to maintain common areas in various types of real estate developments, such as condominiums and subdivisions. Depending on the type of development, membership in the HOA usually is automatic upon becoming a property owner in the development. HOAs have the authority to enforce the restrictions found in the homeowners' property deeds. An HOA gets its power and authority from a variety of legal documents, including the HOA's governing documents and federal and state laws. The HOA governing documents consist of the declaration of covenants, conditions and restrictions (CC&Rs), the articles of incorporation, the bylaws, and the rules and regulations adopted by the HOA's board.

26. Homeowners' associations often reserve the right to approve or reject new residents, whether expressed in writing, orally, or implied through verbal remarks to the contrary affecting a homeowner that is a member of the HOA and a member of a protected class. Such approval or rejection can't be based on race, color, religion, sex, handicap, familial status or national origin because this would violate the Fair Housing Act and other State and Federal laws as applicable in this matter.

27. Constitutional Laws Violated:

a. Seventh Amendment – Civil trial by jury. In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any court of the United States, than according to the rules of the common law. Thus, HOA "Laws" do not abolish Constitutional Laws.

b. Ninth Amendment – Protection of rights not specifically enumerated in the Constitution. This amendment declares that the listing of individual rights in the Constitution and Bill of Rights is not meant to be comprehensive; and that the other rights not specifically mentioned are retained by the people. The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people. Thus, HOA "Laws" do not abolish Constitutional Laws.

c. Tenth Amendment – Powers of States and people. The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. This amendment reserves to the states respectively, or to the people, any powers the Constitution did not delegate to the United States, nor prohibit the states  or people from exercising. Thus, HOA "Laws" do not abolish Constitutional Laws.

d. The Four Freedoms were goals articulated by US President Franklin D. Roosevelt on January 6, 1941. In an address known as the Four Freedoms speech (technically the 1941 State of the Union address), he proposed four fundamental freedoms that people "everywhere in the world" ought to enjoy:

1.Freedom of speech and expression

2.Freedom of worship

3.Freedom from want

4.Freedom from fear

e. Living within an HOA does not afford homeowners the freedom of expression, freedom of worship, freedom from want, and freedom from fear. We all fear HOA liens on our property and the cost of losing money involved defending the right to not have a lien placed on our title of our properties when the HOA Board abuses powers by threatening to place lien;  when they decide a violation has occurred, they indeed place liens on properties, taking away our liberties to own our properties outright. We are not afforded a fair trial. Thus, the homeowners do not own the land, the HOA owns the homeowner. It is a master-slave relationship.

f. Thirteenth Amendment to the United States Constitution, which abolished slavery. The Thirteenth Amendment to the United States Constitution officially outlaws slavery and involuntary servitude, except as punishment for a crime. HOA homeowners should not be subjected to a "Master-Slave" relationship by the HOA Board and WSPS acting as the "master" in this regard. Psychological coercion had been the primary means of forcing involuntary servitude in United States v. Ingalls, 73 F. Supp. 76, 77 (S.D. Cal. 1947). However, in United States v. Kozminski, 487 U.S. 931 (1988), the Supreme Court ruled that the Thirteenth Amendment did not prohibit compulsion of servitude through psychological coercion. Kozminski limited involuntary servitude to those situations when the master subjects the servant to: 1. threatened or actual force, 2.threatened or actual state-imposed legal coercion.

g. The Trafficking Victims Protection Act of 2000, P.L. 106-386, updated the federal anti-slavery statutes to include victims who are enslaved through psychological coercion, even if there was no physical coercion. The HOA Board abuses their powers through psychological coercion, through the threatening of liens as their remedy for homeowners not complying exactly as the HOA Board believes they can require through their abuse in powers. The HOA Board and WSPS abuses their powers through implied psychological coercion of:  "Do what we say or we will eventually take your property from you. " That is a clear type of psychological coercion. Thus, violating the provision of master-slavery psychological provisions as provided under the Trafficking Victims Protection Act of 2000, which pertains to anti-slavery.

28. As of the date of this NOTICE, I will be placing my property located at: 15437 East 7th Circle, Aurora, CO 80011, for sale. Please address all future correspondences to my following permanent residential address:

Anshel Bomberger and Kennedy Smith-Fliesher
P.O. Box 1126
Georgetown, CO 80444-1126;
AnshelSBomberger@gmail.com

Respectfully Submitted,
Anshel Bomberger
Complainant

cc:

United States Department of Housing and Urban Development (HUD)
Office of General Counsel, Headquarters Managers OGC
Helen R. Kanovsky, Esq., GC
451 7th Street S.W., Room 10110,
Washington, DC 20410

United States Department of State
Under Secretary for Civilian Security, Democracy, and Human Rights
Office to Monitor and Combat Trafficking in Persons
Hillary Rodham Clinton
Secretary of State
2201 C Street NW,
Washington, DC 20520

Colorado Department of Regulatory Agencies (DORA)
Division of Civil Rights
Steven Chavez, Division Director
1560 Broadway, Suite 1050,
Denver, CO 80202-5143

Anti-Defamation League (ADL)
1120 Lincoln St Ste 1301,
Denver, CO 80203

HOA Specializing Law Firms

Arizona

Lynch Legal Firm

 

Colorado

Douglas Turner Law Firm

Hindman Sanchez Law Firm

Winzenburg Leff Purvis & Payne Firm

 

Florida 

Buckingham, Doolittle, and Burroughs

Levin Tannenbaum Law Firm

 

New Jersey

Tom Martin Law Firm

 

Ohio

Buckingham, Doolittle, and Burroughs

 

Oregon

Barker Martin Law Firm

 

Pennsylvania


These links and/or referrals provided are not intended to be specific legal advice. It only provides general legal information. You should consult a licensed attorney in your area and expertise needed if you have a specific legal issue. This list is not a complete list. It is a work in progress. If you know of a law form that handles HOA abuse in any State, please contact me and let me know their web site. Do not just give me their name. Send your information to: AnshelSBomberger@gmail.com.

10 Things An HOA Won't Tell You...

1. "We Can't Wait to Get Our Hands on Your Money -- Or Even Your Home."

A gardening violation. That's what landed Jeffrey DeMarco in hot water with his Rancho Santa Fe, Calif., homeowners association a few years ago: He planted too many roses on his four-acre property. Peeved, the association fined him monthly and sat back as the bills mounted. Then it placed a lien on his property and threatened to foreclose, according to DeMarco.

He took the board to court, but lost on the grounds that he had violated the association's architectural design rules. (In addition to planting roses, he also had regraded the site.) In the end, he got stuck with the association's $70,000 legal bill and lost his home to the bank. "Mr. DeMarco came into the community and wanted to step outside the rules," says Walt Ekard, the association manager. "That's a detriment to everyone."

Think it couldn't happen to you? Think again. Many people who belong to homeowners associations do not understand just how much power these groups have over them -- until they miss a payment or otherwise run afoul of the board. Fall a single day behind in paying your monthly dues, for instance, and the association may slap you with a fine. Fall 90 days behind and it may place a lien on your home and threaten to foreclose unless you pay up immediately. And because you often hand over the right of property trustee to the association when you agree to the by-laws, in some cases "you don't even get to go to court," says Evan McKenzie, a lawyer turned political science professor in Chicago and the author of Privatopia: Homeowner Associations and the Rise of Residential Private Government.

Your best defense, if you can afford it: paying what the association says you owe, then arguing. Most associations work on a "balance forward" accounting system, in which your payments go toward the outstanding balance. By delaying, you'll just accumulate more late fees.

2. "We're More Secretive Than the CIA."

Like corporate boards, which have a fiduciary responsibility to make disclosures to shareholders, a homeowners association board is supposed to be upfront with its members. But all too often, boards play things close to the vest. "The board will say everything is confidential and they can't tell you anything," says Willowdean Vance, president of the American Homeowner Association, a consumer group based in Lake Forest, Calif. "They're just on a power trip and it's absolutely deceitful."

Some boards can be impossibly stubborn about disclosure. When a few members of the Columbia Foundation, a Maryland homeowners association, tried to gather some information, another faction of the board was so miffed at not being consulted first, that they went so far as to try and impose a rule that would have required members to get permission from the entire board before asking an outside agency for information. Larry Holzman, an attorney with Ochs, Holzman and Rosen, a firm specializing in homeowners litigation, says the rule was voted down only after a major publicity campaign put forth by the Maryland Homeowners Association.

Homeowners who feel shut out should first write a letter to the board formally requesting access to the records, suggests Debra Bass, a spokeswoman for the Community Associations Institute. If the board is still mum, "ask for a letter from the association attorney that explains why you can't see the records," she adds. And if you still aren't satisfied with the board's response, move somewhere else, or hire a lawyer and sue. "The entire budget should be open and available to every homeowner," says Bass. "It should not be kept a secret."

3. "When In Doubt, We Sue."

Board members will tell you that the last thing they want is to go to court. But it happens all the time. Experts estimate that in California, 75% of the homeowners associations are embroiled in a legal tangle of some kind. Chicago attorney Mark Pearlstein, who represents associations, figures that 60% of all condo boards and homeowners associations in Illinois are involved in some kind of legal suit.

It's partly a reflection of our increasingly litigious society. But that's not the only reason. "The association lawyers tell the board to enforce every rule," says author Evan McKenzie. "They say, 'If you make one exception, the whole neighborhood falls into chaos.' But who gets paid every time you take an owner to court?"

The lawyers, of course. But the litigation option can be hard for board members to resist. For instance, Margurette Nicholson was board president in 1991 when her association in Portola Hills, Calif., took a neighbor to court for installing a satellite dish in his backyard. "Nobody wanted to take this thing to court," says Nicholson. "But one of the homeowners was a lawyer and she was friends with the association's lawyer. They both campaigned for it. They both said we would win. I knew we wouldn't." Indeed, the owner's lawyer argued that the rule infringed on his client's First Amendment rights and he won. The board's legal fees: more than $40,000.

4. "You Won't Be Able To Sell When You Want."

Besides being expensive, lawsuits often mean that you won't be able to sell your home when the time comes to move. "Would you want to go out and buy a property that was in the middle of a lawsuit?" asks Oliver Burford, executive director of the Executive Council of Homeowners, a trade group for California associations. "I wouldn't."

Naturally, banks don't like lending money for homes on which lawsuits are pending, either. But there are exceptions. "There will always be some lenders who are willing to lend you the money," says Larry Holzman, a Maryland attorney. "The problem is you will not be able to get the same rates set up because banks have very strict lending criteria." If you find out a condo you're interested in is embroiled in litigation, use that information to negotiate a lower price, Holzman advises. If you're the seller of such a property, you'd better not hold out for top dollar.

5. "We're Poorer Than We Look."

Every association has a reserve fund. It's like a savings account, and it's meant to be tapped when things go wrong or the property falls into disrepair. But often these funds are in terrible shape themselves.

Ron Williams, an engineer with R.J. Moore, a consulting company that specializes in reserve accounting, once worked with a Northern Virginia condominium that had a paltry $100,000 set aside. "Closer to $1.25 million would have been considered healthy," says Williams. When power-plant equipment gave out in early 1994, the association didn't have the $400,000 needed to replace it. The solution: A $2,400 special assessment to each of the 170 unit owners and a 22% increase in monthly dues.

When it comes to checking up on a reserve fund, there are two good rules of thumb. First, about 20% to 25% of your dues should go toward the reserve fund, says Robert Nordlund, president of Association Reserves, a California company that specializes in reserve accounting. Second, there should be a long-term schedule for the reserve fund in the annual budget, including a projection of upcoming expenses for each common-area item: elevator repairs, painting, pool maintenance and so on. Reserve accountants suggest that the account should contain no less than 70% of the projected reserve budget. If the account is 30% funded or less, you can expect to be hit with some big assessments down the road.

6. "We Can Make Up the Rules As We Go Along."

By law, a majority of the homeowners in an association have to approve any change in the bylaws. But many boards sidestep this by simply changing their house rules, which are as binding as bylaws but can usually be rewritten without asking all the homeowners. "Even if you were to be given the rules today, they're probably already out of date because [boards are] constantly making changes to the rules at whim," says Elizabeth McMahon, a co-founder of the American Homeowners' Resource Center, a San Juan Capistrano, Calif., consumer group. "And they couldn't care less if you don't like them."

At the Reston (Va.) Homeowners Association, for instance, only residents who used the swimming pools and tennis courts had to pay for their upkeep. But then in 1990, the board decided everyone ought to chip in, and it polled members. More than 70% of those who voted opposed the new rule, but it didn't matter. In the end, the board pushed it through anyway, and fees climbed 26%. "They disregarded the will of the people," says Thierry Gaudin, a Reston homeowner, "and that was wrong."

It may be wrong, but it's the board's right. Period. "Bottom line, the board has to have the right to run the show," says attorney Benny Kass, who represents associations. About all you can do is keep up to speed on any changes the board makes in the rules, and if you don't like them, complain. The sooner you raise a fuss, the better: Rules that have been around for a while tend to be the hardest to change.

7. "We Don't Want You At Our Meetings."

Monthly meetings are open to all homeowners. At least in theory. "A lot of times, however, meetings are moved at the last minute to limit the questions from homeowners or to keep information from them," says Willowdean Vance, president of the American Homeowner Association, a consumer group based in Lake Forest, Calif., which has fielded a number of complaints from homeowners who were shut out of meetings.

Even when you can attend, the board may not acknowledge you. "Board members won't come out and say that they don't want you at their meetings," says Vicki Satern, co-founder of Common Ownership Alliance, a Washington, D.C., consumer group. "But basically, that's what their goal is."

She knows from firsthand experience. The board at her Virginia vacation home once decided to hire a new management company. The problem: "They cost double the money," says Satern. "They wanted 6% of refurbishing contracts, 10% on engineering contracts, plus we had to buy their copyrighted software and the equipment to use it."

Outraged, Satern raised her hand at a board meeting. "They ignored me," she says. "Finally, I just spoke up. They yelled at me and said I was not allowed to speak." The new management company was hired.

"When you come to a board meeting," says B. William Smink, the association's attorney, "you can sit, you can observe, but you cannot speak because the board is there to exercise its business judgment. And that's in compliance with national and state community-association laws." Satern would have done better, according to Smink, if she had contacted the board members individually before or after the meeting.

Other options for homeowners who feel ignored: "Put your complaint in writing," says attorney Michael Nagle, who represents associations. "That's hard to ignore." If that gets you nowhere, petition other homeowners and call a special meeting to discuss the issue or to remove some of the board members. "And if it's really bad, take the board to court," suggests Nagle.

8. "We're In Over Our Heads."

Most board members are volunteers, and they generally get their training on the job. Sometimes their inexperience means they bungle the bookkeeping, resulting in higher fees or assessments. Sometimes they fail to do their homework on outside contractors, meaning that you get shoddy workmanship in your common areas. And sometimes, as Mary Lindsey knows all too well, they can cause much bigger problems.

While involved in a divorce in 1992, the Pomona, Calif., family therapist fell behind in her monthly dues. Back dues, late fees and interest quickly mushroomed, so Lindsey tried to work out a payment plan with the board and a credit-counseling service. But they couldn't agree on exactly how much was owed. "I thought I owed them less than $800," says Lindsey. "They said it was over $1,000." The dispute wound up in court as the association threatened to foreclose on her home.

In the end, it turned out that Lindsey was right about the money she owed. The board had goofed. But the association won its lawsuit anyway. The judge ruled that she was wrong not to make back payments while the matter was in dispute. To her dismay, Lindsey was left with a $22,000 bill for the association's legal costs, late fees and interest.

9. "We Work For Nothing But Get Compensated In Other Ways." 


Being on the board is a thankless job, board members will tell you. That's probably true much of the time. But strictly speaking, it's not always so. The thanks they often get may surprise you.

Special favors and perks for board members are fairly common, not to mention being a "control Freak, fulfilling the need of "Pathological Narcissist Supply." The potential for abuse is inherent in the way these things are organized. The board members give themselves and their friends privileges and they never get hassled. The worst-case scenario: The board retains a contractor and board members get kickbacks.

"This goes on, no question," says Virginia real estate attorney Fredrick H. Goldbecker. "It's usually done legally, so it's bulletproof, but that doesn't make it right." When the roof needs repairing, for example, "the board says the work needs to be done a certain way, and the only roofer in town who can do it that way is related to a board member," Goldbecker says. Because many associations have no formal system of checks and balances, homeowners often have no idea how their boards make decisions about contractors. About all you can do is keep a careful eye on the board. Big expenditures, no matter how mundane, are worth looking into.

10. "We're Incredibly Petty."

In many associations being hard-nosed about the rules is practically the board's raison d'etre. "Some of these board members have nothing better to do. So instead of taking care of the property, they censor people's lifestyles," says Vicki Satern of Common Ownership Alliance. She needn't tell Allen Warshaw. To ward off a neighbor who had attacked him with a log, he asked his Rockville, Md., board to bend the rules. He wanted a six-foot fence, two feet taller than allowed. When the application was denied, he sued -- and lost. Warshaw wound up with the association's bills, too. The total: $23,000 in legal fees, court costs and interest.

Humbled but determined, he built a shorter fence. "I wasn't really worried because the board had told me that they don't go out and measure fences," he says. As soon as the fence was up, several board members walked over to Warshaw's yard and measured it. And indeed, in some areas the fence was a few inches over four feet. The dispute continued. "They put a lien on my property," Warshaw says. "They took all my savings, and they're garnishing my paycheck. It's like I am a common criminal. It has been devastating." Says Jeffrey Van Grack, the association's attorney: "The board made numerous offers to try to work out the payments, but Mr. Warshaw refused."

Sometimes the pettiness is more subtle. When one Virginia homeowner asked for permission to hang Christmas tree lights in 1992, the board didn't like the idea but didn't know how to prevent it. "We struggled with this one," says lawyer Benny Kass, who represented the association. "But we finally concluded that the restriction against hanging lights was valid because you were pounding nails into the wood, and that was a fire hazard." Ho-ho-ho.

This article is not intended to be specific legal advice. It only provides general legal information. You should consult a licensed attorney if you have a legal issue.


Homeowner Legal Options Against HOA Abuse of Power

Homeowner Associations ("HOAs") are intended to operate in the community's best interest, making the community a more pleasant place to live while also maintaining property values. Unfortunately, HOAs sometimes become a source of disputes and disagreement that hinder rather than help to achieve these community goals. Disagreements are common between homeowners and HOAs regarding community issues. Common examples of such disputes include the unequal enforcement of community rules, disagreements over the interpretation of rules, and disagreements over enforcement actions against neighbors for alleged rule violations.

HOAs have broad powers, the main source of which derives from the community's Declaration of Covenants, Conditions, and Restrictions ("CC&R's" or the "Declaration"). Other sources of power include the community bylaws, architectural rules, and other community rules adopted by the board of directors. Common HOA powers include the ability to restrict land usage through architectural guidelines, the imposition of fines for violations, the recording of liens upon member's homes for unpaid assessments, and the power to sue members to enforce its rules.

Homeowners often perceive that an HOA is abusing its powers for a number of reasons. Personal disputes between neighbors can sometimes boil over into HOA disputes, whereby the HOA's resources are marshaled against disfavored residents. This can lead to a community belief that the HOA is no longer operating in the community's best interest and changes must be made for the HOA to function properly.

Fortunately for homeowners, a few states (Arizona) has adopted the Planned Community Act and the Condominium Act that provide some protections for homeowners regardless of the powers given to the HOA in its community documents. Arizona courts have also placed restrictions upon HOA power that apply to all HOAs, regardless of the HOA's rules.

Below is a list of some of the actions homeowners can take to restrict HOA power or to ensure that the HOA is acting in the community's best interest.

Removal of Board Members

Any HOA board member can be removed if a sufficient number of HOA members vote to remove this board member. By law, all HOAs that are covered by the Planned Community Act or the Condominium Act have a uniform process to remove board members.

To begin the removal process, a petition must be circulated calling for a special meeting to vote on the removal of the board member. An HOA must hold this special meeting within thirty (30) days from the receipt of a petition signed by an adequate number of HOA members. In smaller HOAs, those with one thousand or fewer units, this petition must be signed by twenty-five percent (25%) of the members entitled to vote in the community or one hundred members, whichever is less. In larger HOAs, those with one thousand or more members, the petition must be signed by ten percent (10%) of the HOA's members or one thousand members, whichever is less.

Once the HOA has received a petition with a sufficient number of signatures, the Board of Directors is required to provide written notice to all homeowners of the special meeting and to hold the meeting within thirty (30) days of receipt of the petition. At that special meeting, a quorum of at least twenty percent (20%) of the total owners entitled to vote must be present either in person or by absentee ballot. Assuming there is such a quorum, it only takes the vote of a simple majority of those present at the meeting to remove the board member or members.

HOAs often decide to contest these removal efforts; therefore, it is recommended that members considering removing board members discuss the removal process with an attorney experienced in board removals to increase the probability that these removal efforts will be successful.

Amending Community Rules

The main source of HOA power is found in the Declaration. Nearly every Declaration allows the HOA's powers to be amended. Even if the Declaration does not contain amendment language, it may be amended upon unanimous consent of the community. By amending the Declaration, homeowners can change the HOA's powers, such as limiting the HOA's authority to fine homeowners for certain violations, or even eliminate the HOA altogether.

Amendment provisions contained in Declarations vary widely. Some Declarations allow amendments by a simple majority vote of the homeowners, some Declarations require all homeowners to unanimously approve amendments, and other Declarations require varying percentages anywhere between 50% and 100%.

Amending a Declaration is often difficult due to the significant community support required for such an amendment and the particular rules that must be followed to properly vote on and approve such an amendment. Additionally, the process can become more difficult if an HOA decides to "fight" efforts to amend its power. Meeting with an attorney experienced in amending HOA Declarations is recommended in order to increase the chance that such amendment efforts will be successful.

Restrictions on HOA Power

[Arizona] law places certain restrictions on HOAs, regardless of the powers given to the HOA in the community documents. Below is a list of some common restrictions on HOA power. If the following principles are not followed, an HOA decision could be invalidated.

Board members must act as fiduciaries to the association, meaning all board members must put the interests of the community ahead of their own personal interests when acting on behalf of the HOA.

    If any HOA action could financially benefit a board member or that board member's immediate family, the board member must state this conflict at an open meeting before voting on the issue.

    HOAs must act reasonably and treat members fairly. An HOA may not carry out its duties in a manner that is arbitrary, capricious, or unreasonable. In other words, community rules must be reasonably enforced.

    HOAs may not selectively enforce community rules against particular homeowners. HOA rules must be enforced as equally as possible.

Homeowners are also encouraged to read the article entitled, "Homeowner Association Rights" at http://www.lynchlegalfirm.com/ for additional homeowner rights in an HOA.

Conclusion

Homeowners can bring a lawsuit against their HOA, and in some circumstances against individual board members, if the HOA abuses its power. Homeowners can ask the Court to declare that a statute or community rule has been violated and request that the Court order the HOA's compliance with that statute or rule. The prevailing party in such disputes can be awarded its reasonable attorneys' fees and costs incurred in bringing such a lawsuit, within the judge's discretion.

Homeowners and HOAs also formerly enjoyed access to the Office of Administrative Hearings through the Arizona Department of Fire, Building & Life Safety to resolve community disputes. This process permitted an administrative law judge to review an HOA's actions and order compliance with the HOA's governing documents or state law, in a relatively inexpensive and timely manner. However, in early 2009, this process was declared to violate the [Arizona] Constitution and this expedited complaint process is no longer available for [Arizona] homeowners. It remains to be seen whether the [Arizona] legislature will attempt to recreate this HOA process. In the meantime, HOA disputes are now solely within the jurisdiction of [Arizona's] courts.

Lawsuits against an HOA should be viewed only as a homeowners final option if all other efforts have failed. The best method for avoiding HOA lawsuits is usually for the opposing parties to simply meet face-to-face and attempt to work out a compromise. Sometimes, it may even be in the homeowners best interest to comply with an unreasonable demand from an HOA. If all other efforts fail, a lawsuit may become the best option; however, a homeowner should meet with a licensed attorney experienced in HOA disputes to discuss all available options.

This article is not intended to be specific legal advice. It only provides general legal information. You should consult a licensed attorney if you have a legal issue.

Courtesy:

The Bainbridge Law Firm, L.L.C.
2122 E. Highland Avenue, Suite 260
Phoenix, AZ 85016
602-635-7997
888-519-9679
Fax: 602-297-6595
http://www.lynchlegalfirm.com/Contact.shtml

Vent Here - Tell Your Story



Ten years I suffered from HOA Syndrome. My self-respect, emotional regulation, and distress tolerance was tested. Not with each notice I received, but by also from witnessing the faces of families, my neighbors, as they suffered silently too. I witnessed neighbors taking care of their front lawns out of fear, not out of pride in living there. I heard reports of Vietnamese families being bullied out of all the equity in their home in HOA liens, fees, and legal costs over trivial matters. I was discriminated against using the by-laws against me. I was discriminated against based on my gender identity. My son, whom is co-owner of our properties was discriminated against based on him being a homosexual. We all have a right to live anywhere. We are legal citizens in our country. Our country is based on freedoms, except in an HOA. I noticed no one played on our block. No one talked to one another. It was the most dysfunctional system I have ever experienced in my lifetime. The stress I felt in having to have a perfect home made me emotionally and physically sick. Living happily was my goal and my objective when I contracted to have a home there, never to be abused by the by-laws and HOA system. I was not happy in my expensive home. In fact, I'd venture to guess, no one in my neighborhood was happy, except those in charge of our HOA. Getting back my own power was my long-term objective. Being happy and healthy is my objective now. Sadly, HOA's in most covenant controlled communities have quite the power -- a quasi-government that has more power and control than our own Constitutional Rights! The only options I felt to live a happy and healthy life was to leave, so I did. I realize many of you are stuck, you feel you have no where else to go. Be strong, look up your legal rights, and fight for them; no matter how small or trivial. Do not allow the HOA bullies to take away your power using by-laws as the vehicle to control or abuse you. Speak up and fight back. HOA's should be outlawed. Law makers, States, and the Federal government that continue to allow this abuse should be responsible for these abuses. HOA's are criminal! Extortion is criminal.The issue here isn't the "notice" or just the "fine." The issue is the abuse of power and non-judicial foreclosures. That is extortion, which is criminal. I will not rest until I see all HOA criminals in jail for white collar crime. After all, our HOA is a "Limited Liability Corporation."

“History bequeaths a demonstrative message: Some who gain a position of power will inevitably strike down the rights of others, animals and humans, in the name of greed, grandiosity, and evil sadistic gratification.  Brief time passes, societies crumble under the weight of rise to power, and without learning prior lessons, the disgorging cycle once again begins.”
Professor Gary Solomon






This blog is not intended to be specific legal advice. It only provides general legal information. You should consult a licensed attorney if you have a legal issue.

Anshel Bomberger